What might Aflac do in response to fraudulent activity?

The appropriate response to fraudulent activity at Aflac would be to terminate agreements with those involved in fraudulent actions and report the misconduct to the relevant authorities. This approach demonstrates a commitment to ethical standards and compliance with laws and regulations. Taking such action helps protect the company’s integrity, uphold trust with customers and stakeholders, and deter future fraudulent behavior.

Addressing fraud through termination and reporting sends a clear message that unethical conduct will not be tolerated. It also ensures that the company fulfills its legal obligations and maintains good standing in the industry. This proactive strategy reinforces a culture of accountability and responsibility within the organization, essential for sustaining overall operational integrity and public trust.

In contrast, increasing commissions for all agents would likely incentivize unethical practices, additional training, while beneficial in promoting ethical standards, may not be sufficient to address existing fraudulent activity. Ignoring the misconduct could lead to greater repercussions not only for the individuals involved but also for the company's reputation and operational viability.